The past 24 hours have been a real test for traders: the market made a sharp upward reversal, triggering a massive wave of short position liquidations. I have carefully analyzed the price movement, ETF inflows, and regulatory news to highlight the most important points.
Bitcoin and Altcoins: A Rapid Surge
Bitcoin demonstrated impressive momentum, rising 8.09% over the day. From around $64,000, the leading cryptocurrency soared to nearly $70,000, before correcting and settling near $69,300. Ethereum posted an even stronger result, gaining 17.42% to reach $2,241. Among the top 20 by market cap, Hyperliquid (HYPE) stood out with a 22.25% gain, along with Solana (SOL) and XRP, which both rose more than 10%.
Wave of Liquidations: Short Sellers Suffer Losses
The sharp rally left no chance for those betting on a decline. Over the day, positions worth approximately $2.99 billion were liquidated, with the vast majority—$2.74 billion—coming from short positions. This is one of the largest short squeezes in recent times. The largest liquidation order was executed on Hyperliquid for the BTC-USD pair, totaling $48.8 million. The trigger for the reversal was the minutes from the July FOMC meeting and statements by Donald Trump regarding Bitcoin.
Institutional Inflows and Regulatory Shifts
Institutional investors are actively increasing their positions. Spot Bitcoin ETFs recorded inflows of $517.19 million, while Ethereum products attracted $189.15 million. Against this backdrop, BitGo became the first foreign crypto company to obtain a VASP license in South Korea directly, without acquiring a local player. This is an important signal for the market: the path to the Asian region is open for Western giants.
My View on the Situation
Such sharp movements are a classic sign of an overheated derivatives market. After such a powerful impulse, we often see consolidation, and the current level of $69,000–$70,000 will become a key resistance zone. However, ETF inflows and a positive regulatory backdrop could provide sufficient support for the continuation of the upward trend in the medium term.